6 September 2024
Bitcoin (BTC) has been on a severe downward trend for the past few months, experiencing multiple price fluctuations amidst broader market volatility. A crypto analyst has predicted that Bitcoin could witness an even steeper drop to $50,000 if its price does not hold this key support level.
Bitcoin Risks $50,000 Drop If Support Fails
Elja Boom, a crypto analyst took to X (formerly Twitter) on September 5 to discuss the current price trends and market movements of Bitcoin. Boom shared a price chart offering key insights into Bitcoin’s future outlook, indicating that the cryptocurrency’s short term uptrend has likely ended.
The analyst expects Bitcoin’s price to stay within the range of $54,000 and $54,500. However, if the cryptocurrency fails to hold this crucial support level, its price could witness a significant correction, potentially pushing it down to new lows around $50,000.
Interestingly, the analyst observed a recurring pattern in Bitcoin’s price action in the last few months. He noticed that Bitcoin has declined significantly during the first five days of each month. The cryptocurrency dropped in the first week of July and August and is witnessing the same bearish performance in September.
Earlier this month, Bitcoin’s price fell below $60,000, after witnessing strong price declines that dropped its value by over 4%. CoinMarketCap reveals that Bitcoin has increased slightly by 1.2% in the last 24 hours, however bearish sentiment still persists among various market analysts.
Crypto expert, Ali Martinez disclosed recently that Bitcoin could drop as low as $40,600 if it fails to maintain a price above the $51,000 support level. Martinez emphasized that Bitcoin’s 2-month chart is showing a TD Sequential indicator that is presenting a sell signal. This suggests that the cryptocurrency may be gearing up for a major price correction.
Additionally, the analyst has urged traders to keep an eye on a potential price breakout around $68,000. He revealed that until Bitcoin surpassed this key level, its price may continue dipping.
Could A Bull Run Follow BTC’s Descent Towards $50,000?
Due to Bitcoin’s persistent price corrections, many analysts believe that the cryptocurrency may decline even further before witnessing a price rebound. Michael van de Poppe, a popular crypto analyst, has shared his price forecast for Bitcoin this September.
Poppe revealed that the Bitcoin market is currently in a steep correction phase, characterized by widespread liquidations that have failed to trigger a bounce upwards. In light of this, the analyst believes that a drop to $53,000 or even as low as $49,000 could occur for Bitcoin.
After this downtrend, Poppe believes that a price reversal may be imminent. This bullish sentiment is shared by a crypto analyst, identified as ‘Titan of Crypto,’ who predicts that October may be the month that Bitcoin finally breaks out of its bearish cycle.
Sharing a price chart tracking Bitcoin’s previous bear cycles and bull runs, the analyst predicts that the cryptocurrency could breakout to $100,000 soon, marking the possible start of a bull run.